SET 1

Question 1

The most important document of a company is its:

A. prospectus.
B. annual report.
C. memorandum of association .
D. articles of association .

Answer 1

C- Memorandum of Association

Question 2

The rules and regulations for the internal management of a company are contained in its:

A. prospectus .
B. annual report .
C. memorandum of association .
D. articles of association

Answer 2

D- Articles of Association

Question 3

Mark out the document that need not be prepared and registered with the registrar of companies in public limited companies:

A. statutory declaration
B. memorandum of association .
C. articles of association .
D. d. directors undertakings to take up and pay for qualification shares.

Answer 3

C- Articles of Association

Question 4

The union government may appoint such number of directors in a company as it may deem necessary:

A. at its own initiative .
B. on the application of least 100 members of the company .
C. on the application of members holding at least 10% voting rights.
D. any of the above

Answer 4

D- Any of the above

Question 5

A director’s election takes place in a general meeting through a separated Resolution passed by a _______ majority.

A. single.
B. two-thirds.
C. three-fourths.
D. five-sixths .

Answer 5

A- Single majority

Question 6

Which of the following is beyond the powers of the board of directors?

A. To issue debentures.
B. To make loans.
C. To remit the payment of any debt due by a director.
D. to issue prospectus.

Answer 6

C- To remit (cancel) the payment of any debt due by a director

Question 7

The minimum subscription is to be received within ______days of the offer.

A. 30.
B. 60.
C. 120.
D. 150.

Answer 7

C. Within 120 days

Question 8

The private company requires conversion of a public company into a __________.

A. an ordinary resolution .
B. a special resolution
C. a special resolution and union governments approval
D. a special resolution and company law board approval

Answer 8

C. Into a special resolution and the union governments approval

Question 9

A share certificate once issued by the company binds it in two ways, namely by estoppel as to title and ___________.

A. by estoppel as to payment.
B. by estoppel as to profit.
C. by estoppel as to dividend.
D. none

Answer 9

A. Estoppel as to Payment

Question 10

Share capital of a company means __________.

A. equity share capital .
B. preference share capital
C. equity and preference share capital .
D. equity and preference share capital and debentures.

Answer 10

C. Equity and preference share capital

Question 11

A shareholder in a company___________.

A. can be its debenture holder
B. cannot be its debenture holder
C. alone can become its debenture holder
D. must also become its debenture holder within a year of being a shareholder.

Answer 11

A. Can be its debenture holder

Question 12

The dividend on preference capital is paid_____________.

A. whenever there are profits
B. only if there are profits.
C. even if there are no profits.
D. only when the directors recommend it .

Answer 12

D. Only when the directors recommend it